Amplats Hopeful for Strike Deal as Union Calls Meeting

June 21 (Bloomberg) -- A “breakthrough” has been made in
talks to end a strike that has kept most mines shut at the
world’s three biggest platinum producers since Jan. 23 and a
meeting with workers will be held to announce it, a labor union
official said.

More details will be given by leaders of the Association of
Mineworkers and Construction Union, which represents the more
than 70,000 miners on strike, at a stadium near Rustenburg on
June 23, Jimmy Gama, the union’s treasurer, said by text message
yesterday. Anglo American Platinum Ltd., the world’s largest
platinum producer, is “hopeful” of an end to South Africa’s
longest and costliest mining strike, spokeswoman Mpumi Sithole
said in an interview.

“A breakthrough has been made,” Gama said. “Come to
Royal Bafokeng stadium on Monday for more details.”

The AMCU has led a strike by workers at Anglo American
Platinum, Impala Platinum Holdings Ltd. and Lonmin Plc in
support of a demand that basic pay be doubled to a minimum of
12,500 rand ($1,173) a month. Producers say they’ve lost 23.4
billion rand in sales from the strike and workers missed out on
10.4 billion rand in wages. South Africa’s economy contracted in
the first quarter as a result of the strike with mining output
falling the most since 1967.

The producers last week agreed in principle to monthly pay
increases of as much as 1,000 rand on current basic wages of
about 5,000 rand to 6,000 rand.

The union met with each of the employers this week to
discuss conditions raised by the union over pay proposals
presented to workers last week. Talks with Impala were
“positive,” Gama said earlier.

Constructive Meeting

“Our meeting with AMCU has been constructive and we’re
hopeful about a positive outcome in the very near future,”
Sithole of Anglo American Platinum said.

Impala spokesman Johan Theron said his company’s meeting
with the union was still in progress “but by all accounts we’re
making progress.” Mineral Resources Minister Ngoako Ramatlhodi
said he expects a deal to be concluded this weekend, according
to Johannesburg Eyewitness News website. Lonmin spokeswoman Sue
Vey didn’t immediately respond to calls seeking comment.

While workers accepted the pay proposal at mass meetings,
they had conditions to their assent relating to issues including
back pay, the length of the agreement, reinstatement of some
workers who had been fired and accommodation allowances, AMCU
President Joseph Mathunjwa said on June 12. The union was to
call another mass meeting after the conditions were discussed
with companies, Mathunjwa said.

The AMCU became the biggest union on South African platinum
mines, which account for about three quarters of world output,
after a strike at Lonmin Plc’s Marikana mine in 2012. During
that strike police shot dead 34 protesting mine workers and
another 10 miners, security guards and policemen died.

Platinum for immediate delivery fell 1.1 percent to
$1,455.94 an ounce by 9:02 p.m. in London. Anglo American
Platinum fell 0.4 percent to 490 rand by the close of trade in
Johannesburg while Impala declined 0.6 percent to 113 rand.
Lonmin gained 0.4 percent to 248.4 pence in London.